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New Year, New Real Estate Outlook

December 19, 2022 by Jeremy Lindy in Real Estate

If 2021 was a crazy year, 2022 was downright schizophrenic.  We started the year at an unprecedented rate – each well-priced and properly-positioned property garnered market interest and enthusiasm and contracts were signed as quickly as they could be written. Third quarter brought the juxtaposition of real estate headlines warning of instability, a looming recession and increasing interest rates. Through it all, demand met limited supply, albeit at a slowing pace.  

Buyers are adjusting to the new norm of interest rates by seeking creative financing options and value in their purchases. Sellers are beginning to adjust as well with pricing that is more in-line with buyer expectations. 

Looking ahead to 2023, I anticipate continued stabilization to emerge from this transitional time.  I offer the following tips for buyers and sellers. 

Buyers

  • Get excited! Nearly every listing still on the market is owned by a real seller; there are great deals to be had.  

  • Start now and see properties and even make offers.  There is far less competition and many buyers still waiting on the sideline.  

Sellers

  • Price your property to the market, and you'll get interest and offers. There is less uncertainty than there was a few months ago.  

  • Buyers' excitement is directly correlated to their comfort with mortgage rates.  With a rate environment that appears to be softening right now -- and low levels of inventory -- buyers seems to be adjusting.  Therefore, there's no point in waiting for housing prices to recover to 2021 pricing.  Take advantage of buyer interest now.  

  • Pay close attention to rate drops -- and stock market upward moves -- as a cue to "catch the wave" of buyers.  Go to market on the heels of one, or both, and you'll see more buyer interest.

 

Scott Harris

Scott Harris is a top-producing residential real estate agent with Brown Harris Stevens who can claim transactions totaling more than $1 billion to his credit.

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